Bahrain

Egypt

Iran

Iraq

Kuwait

Lebanon

Oman

Qatar SaudiArabia

Sudan

Syria

UAE

Yemen

Libya

Turkey

Palestine

Tunisia

JordanMorocco

Algeria

MENAInsurance Markets

A MINI GUIdE

A 7th Anniversary Special

brought to you by

S

of

MENAInsurance Markets

A MINI GuIdE

brought to you by

A 7th Anniversary Special of

Mr Ayman Adel El HoutGroup Vice President - Operations, Medgulf, Bahrain

Mr Fady ShammasChief Executive Officer, Arabia Insurance Company S.A.L., Lebanon

Mr Fahad Al-HesniManaging Director & Chief Executive Officer, Saudi Reinsurance Company, Saudi Arabia

Mr Farid ChedidChief Executive Officer, SEIB Insurance & Reinsurance Company, Qatar

Mr Fateh BekdacheVice Chairman & General Manager, Arope Insurance S.A.L., Lebanon

Mr Imad Abdel KhaleqGeneral Manager, Jordan Insurance Company, Jordan

Mr Mahmood Al SoufiChief Executive Officer, Bahrain National Holding Company BSC, Bahrain

Mr Mahomed AkoobManaging Director and Chief Executive Officer, Hannover ReTakaful B.S.C (c), Bahrain

Dr Michael BitzerChief Executive Officer, National Health Insurance Company - Daman, UAE

Mr Michael GertschChief Executive Officer, Gulf Re, UAE

Mr Nagib M BahousPresident & Chief Executive Officer, MIG Group, Bahrain

Mr Patrick ChoffelChief Executive Officer, Oman Insurance Company PSC, UAE

Mr Tarek A Hayel SaeedGeneral Manager, United Insurance Company, Yemen

Mr Walid A SidaniChief Executive Officer, Abu Dhabi National Insurance Company, UAE

Mr Wasef JabshehChief Executive Officer, International General Insurance, Jordan

MENAINSURANCE

CLUB

www.menainsuranceceoclub.com

Steering CommitteeMr Yassir AlbaharnaChief Executive Officer, Arig, Bahrain

H.E. Dr Bassel HindawiImmediate Past Insurance Commissioner, Insurance Commission of Jordan

Mr Sivam SubramaniamEditor-in-Chief, Middle East Insurance Review, Singapore

Members

Managed by

3

Middle East Insurance Review (MEIR) celebrates its seventh anniversary since its launch in September 2006 during the heydays of the high oil prices and infrastructural boom in the MENA region. The boom was so powerful that every major insurer and reinsurer was bound for the Middle East.

But what a difference seven years makes. Market prospects are now more muted with the persistent Arab Spring moving into the Summer of discontent, with two big countries still in a state of war and uncertainty, though dubai has resoundingly recovered from the pangs of the global financial crisis. Takaful has also grown from its heydays of jubilant promises to be called to account for its returns and impact.

Looking back, we at MEIR are very proud to have survived the entire seven years, though many publishers and competitors have come and gone, slowed down to bi-monthly or just become virtual, and some have even become just a mirage. We have even outlived several big MNCs which had rushed into the heat of the region only to be burnt out quickly.

In the seven years we have been covering market developments and introducing all the players from the various nooks and corners of the region to the world, we have seen the market stagnate in some areas and regress in others but move forward in many more areas.

Just for the record: the market has grown from uS$20.4 billion to $44.1 billion between 2006 and 2012. Although penetration has remained flat at 1.5%, insurance density has increased from $170.1 to $305.7 during the period. The life business remains small but greater attention is being paid to it and we are spreading the word.

I salute many of the outstanding CEOs, both locals and foreigners, who have gone out of their way to boost

Foreword

4

professionalism and standards in the market. Among the key developments in the market, growth aside, is the slew of regulations, the growing voice for uniform and actual enforcement of rules and the birth of the MENA Insurance CEO Club (MICC), aimed at providing thought leadership to the MENA insurance industry. The presence of such a dedicated pool of volunteers can only augur good tidings for the industry and MEIR is proud to have been chosen as the Secretariat to this Club that has hosted important milestone conferences for the region like the Political Risks Seminar and the Social Media Conference, both aimed at keeping the industry on its toes to respond to the needs of the day.

Over the past seven years and 84 monthly editions, MEIR has kept the faith in the market through thick and thin, and is confident of brighter days ahead as the industry gets more professional and more responsive to the changing needs of society and economy. We will be there to keep you posted of the next stage of development and zero in on all the key little critical and inspiring developments and nitty gritties in the market. You will never have to walk alone as a subscriber of MEIR with our arsenal of products to support your drive to boost your competitive edge to win in the long term!

And so it is with pride and commitment that we present our Third Mini Guide to the MENA Insurance Markets as a concise fact book on 20 markets in the region. We hope this up-to-date information will serve the needs of practitioners in the market and those keen to do business in the MENA region.

Sivam SubramaniamEditor-in-Chief, Middle East Insurance Review

5

Welcome to Middle East Insurance Reviews guide to the insurance markets across the Middle East and North Africa (MENA) region.

This guide is a well-established and important reference tool for insurance practitioners, providing key details of each market in the MENA region.

AIG is proud to sponsor this guide and has maintained a presence in the MENA region for over 50 years, providing insurance solutions for both consumers and corporate clients and transacting business across the Middle East and North Africa.

Currently, AIG has operations in eight countries across MENA Bahrain, Egypt, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia and the united Arab Emirates.

Over the last few years AIG has been recognised across the MENA region by the business community as well as the insurance industry. AIG was named Egypt Insurer of the Year, Kuwait Insurer of the Year and MENA Financial Lines insurer of the year with recognition for our strong customer focus, excellence in claims management, market leading products and insurance capacity. Most recently, AIG received the MENA Product Innovation award for the launch of CyberEdge Insurance, a first such product for the MENA region.

AIG is committed to the long-term development of the region and the respective insurance markets, and is confident that we will continue to see strong growth of the insurance industry over the next few years.

Michael WhitwellPresident, MEA,AIG

Message from Sponsor

6

7

ContentsInsurance statistics of MENA countries 2012 8

Algeria 12

Bahrain 14

Egypt 16

Iran 18

Iraq 20

Jordan 22

Kuwait 24

Lebanon 26

Libya 28

Morocco 30

Oman 32

Palestine 34

Qatar 36

Saudi Arabia 38

Sudan 40

Syria 42

Tunisia 44

Turkey 46

uAE 48

Yemen 50

Sources 52

8

Total premiums

(uS$ million)

% growth over

previous year

% of world

market share

Middle East (ME)Turkey 10,882 8.0 0.24Iran 8,222 0.7 0.18uAE 7,190 10.4 0.16Saudi Arabia 5,455 10.5 0.12Qatar 1,300 8.6 0.03Lebanon 1,295 4.0 0.03Kuwait 970 18.5 0.02Oman 762 4.1 0.02Jordan 659 7.2 0.01Bahrain 627 9.6 0.01Sub-totalMiddle East 37,362 7.1 0.81

North Africa (NA)Morocco 2,857 -2.5 0.06Egypt 1,818 6.1 0.04Algeria 1,250 5.2 0.03Tunisia 816 -2.4 0.02Sub-totalNorth Africa 6,741 1.1 0.15

MENA 44,103 6.2 0.96

Asia incl Japan 1,346,223 5.3 29.19

Africa 71,891 3.8 1.56

Europe 1,535,176 -5.6 33.28

Total World 4,612,514 1.0 100.00

Insurance statistics of MENA countries 2012

9

Life premiums

(uS$ million)

% growth over

previous year

% of world

market share

Non-life premiums

(uS$ million)

% growth over

previous year

% of world

market share

Middle East (ME)Turkey 1,742 8.5 0.07 9,140 7.9 0.46Iran 652 0.7 0.02 7,570 0.7 0.38uAE 1,443 12.9 0.06 5,747 9.8 0.29Saudi Arabia 235 -2.7 0.01 5,220 11.2 0.26Qatar 58 8.6 0.00 1,242 8.6 0.06Lebanon 377 4.9 0.01 918 3.7 0.05Kuwait 181 18.5 0.01 789 18.5 0.04Oman 126 4.1 0.00 637 4.1 0.03Jordan 62 7.1 0.00 598 7.2 0.03Bahrain 142 9.6 0.01 484 9.6 0.02Sub-totalMiddle East 5,018 8.0 0.19 32,345 7.0 1.62

North Africa (NA)Morocco 930 -2.5 0.04 1,927 -2.5 0.10Egypt 785 6.1 0.03 1,033 6.1 0.05Algeria 89 -3.9 0.00 1,161 6.0 0.06Tunisia 123 -2.4 0.00 694 -2.4 0.03Sub-totalNorth Africa 1,927 0.7 0.07 4,815 1.3 0.24

MENA 6,945 5.9 0.26 37,160 6.2 1.87

Asia incl Japan 957,712 4.3 36.54 388,511 7.8 19.51

Africa 49,888 6.1 1.90 22,002 -1.2 1.10

Europe 876,444 -6.6 33.44 658,732 -4.1 33.07

Total World 2,620,864 0.4 100.00 1,991,650 1.9 100.00

Source: Swiss Re sigma No 3/2013

10

Total business

Life business

Non-life business

Middle East (ME)Lebanon 2.85 0.83 2.02Jordan 2.13 0.20 1.93uAE 1.98 0.40 1.58Bahrain 1.97 0.45 1.52Iran 1.65 0.13 1.52Turkey 1.37 0.22 1.15Oman 1.01 0.17 0.84Saudi Arabia 0.75 0.03 0.72Qatar 0.63 0.03 0.60Kuwait 0.50 0.09 0.40Average (ME) 1.48 0.26 1.23

North Africa (NA) Morocco 2.95 0.96 1.99Tunisia 1.80 0.27 1.53Egypt 0.73 0.31 0.41